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AWA AWB
ARROW
AWA\AWB - Arrowhead Properties Limited - Acquisition of Midtown Mall and
cautionary announcement
ARROWHEAD PROPERTIES LIMITED
(formerly Nervada Trading 13 (Proprietary) Limited)
(Incorporated in the Republic of South Africa)
(Registration number 2011/000308/06)
JSE code for A-linked units: AWA
ISIN for A-linked units: ZAE000158101
JSE code for B-linked units: AWB
ISIN for B-linked units: ZAE000158119
("Arrowhead" or "the company")
ACQUISITION OF MIDTOWN MALL AND CAUTIONARY ANNOUNCEMENT
INTRODUCTION
Linked unitholders are advised that Arrowhead has concluded an agreement for the
acquisition of phases 2, 3, 5 and 8 of Midtown Mall, Rustenburg ("the
acquisition") from the Eric Ellerine Family Trust, the Sidney Ellerine Family
Trust, the Selsick Family Trust and Hica Properties (Proprietary) Limited (the
"vendors"). Phases 2, 5 and 8 of Midtown Mall are freehold properties and phase
3 is a leasehold property.
The acquisition provides Arrowhead with an opportunity to increase its retail
portfolio exposure and gain access to one of the fastest growing retail nodes in
the country. This strategic acquisition will improve the quality and average
size of the portfolio and will also improve the geographic spread of the
company`s properties.
TERMS OF THE ACQUISITIONS AND CONDITIONS PRECEDENT
The total purchase consideration payable by Arrowhead in respect of the
acquisition is R 178 000 000 which amount includes VAT levied at a rate of 0%
(the "purchase price"). Payment of the purchase price for the acquisition will
be secured by way of a vendor consideration placement of Arrowhead A and B
linked units.
The effective date of the acquisition will be the first day of the month in
which either the last freehold property is transferred or the cession of the
leasehold is registered (whichever is the later).
The purchase price shall be discharged in cash on the effective date.
The acquisition is conditional on:
- the owner of the leasehold property consenting to the cession of the
leasehold to Arrowhead;
- the vendors passing the requisite resolutions required to approve the
disposal of phases 2, 3, 5 and 8 of Midtown Mall to Arrowhead; and
- approval by the Competition Authorities.
THE PROPERTY PORTFOLIO
The property specific information required in terms of the JSE listings
Requirements in relation to the acquisition including property name and address,
geographical location, rentable area, sector, weighted average rental per square
metre is set out below.
Property name Sector Geographical Rentable Weighted
and address location Area (m2) Average
rental per m2
Midtown Mall, Retail Rustenburg, 16 903 R 85.88
corner Loop and North West
Fatima Bhayat,
Rustenburg
No independent valuation has been carried out and the board of Arrowhead is of
the view that the purchase price of R 178 000 000 represents the value of the
property as at the effective date.
CATEGORISATION OF THE ACQUISITIONS
The acquisition is classified as a Category 2 transaction in terms of the JSE
Listings Requirements. Accordingly it is not subject to approval by Arrowhead`s
linked unitholders.
FINANCIAL EFFECTS AND CAUTIONARY
The financial effects of the acquisitions are still in the process of being
finalised and will be published in due course. Unitholders of Arrowhead are
advised to exercise caution when dealing in their linked units until the
financial effects of the transaction are announced.
18 May 2012
Sponsor
Java Capital
Date: 18/05/2012 14:45:01 Produced by the JSE SENS Department.
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